It is an interesting coincidence to see that this December, nearly 16 years to the day that the first ever text message was sent, saw the official launch of Project Masiluleke, a groundbreaking new text messaging based initiative aimed at reducing the number of people suffering from HIV and AIDS in South Africa.  By sending one million free text messages per day to people across South Africa, Project Masiluleke will encourage people and those they know, to get tested for HIV. 

Trials of the system earlier this year showed that calls to counselors at the National AIDS Helpline in Johannesburg increased by 200 per cent when messages were broadcast.

This latest initiative is an example of how far text messaging has come since its early beginnings in 1992. The use of mobile phones continues to grow across the world particularly in less economically developed and newly industrialized regions where fixed lines are expensive and difficult to set up. It is in these regions, like Africa, where mobile phones are being used not only as a communication tool but also as a driver for social change.  They have proved fundamental to changing the way people work and socialize, making communications easier, cheaper and much less time-consuming.

The role mobile messaging has played in this development is significant. Gartner expects 2.3 trillion messages to be sent worldwide in 2008 - a 19.6 percent increase from the 2007 total of 1.9 trillion messages. Africa is expected to see one of the healthiest sustained growth rates as the low price of SMS compared with voice calls makes it an ideal service in countries where people have low buying power.

There is still progress to be made as society adapts to new technology. However, in regions which have been traditionally more difficult to reach, text messaging is increasingly allowing communication between hordes of people previously untouched by new and interactive media forms. Offering the mobile as a medium for them to interact with each other, and good causes is bringing new forms of communication to life.

This issue of the Airwide newsletter highlights some of the challenges that come along with the unprecedented success of mobile messaging. We will look at the need to safeguard mobile subscribers from spam and highlight the steps being taken in some regions to eliminate mobile threats to national security. We will also make some prognostications on what this wildly successful technology still has in store for us and explore what impact we expect the difficult financial times will have on future messaging growth.

IN THIS ISSUE

comScore M:Metrics Mobile Subscriber Survey

comScore M:Metrics recently conducted an industry survey on behalf of Airwide Solutions to study the way mobile subscribers use their phones across five European markets - the UK, France, Spain, Italy and Germany. Although the study uncovers some risky trends, the results represent a major opportunity for mobile operators to play a proactive and strategic role in protecting their subscribers, both through education and also through the security solutions they deploy across their networks.

Of the most significant findings were the dangers surrounding mobile spam. Despite some mobile operators leading the way in deploying anti-spam solutions, the study found that there is still some way to go with the number of people in the EU receiving unwanted text messages growing 21.3 per cent year on year. With some spam messages containing mobile worms and viruses, this statistic is cause for concern, especially in France where the problem is growing by 61.3 per cent year on year.

The study also revealed worrying findings into the use of gambling and adult services by under 18 year olds. In total, Spain recorded the biggest problem with 4 per cent of 13 to 17 year olds accessing adult or gambling services between June 2007 and June 2008. The UK recorded the lowest problem with only 1.3 per cent of minors accessing inappropriate mobile internet sites. However, the study also notes that the figures may mask a more serious situation with many teenagers embarrassed or frightened to admit the truth.

With many people now owning smartphones, mobile phones are also being used to safeguard sensitive company information and personal data such as social security numbers, PIN codes, passwords, company financial data and other proprietary information. Many people are also now using them to carry out financial transactions. According to the study, 5.6 million people in the EU access financial information from their mobile phones - a 23.6 per cent jump from the same time last year. Italy has been the fastest to embrace mobile banking services with a 30.2 per cent increase in use from June 2007 to June 2008. When we consider that mobile phones are stolen in half of all robberies in just the UK alone, the need to protect this sensitive financial data has never been greater.

What the study has made clear is that mobile phones have now become a vital part of the way we live. Mobile phones are now far more omnipresent than personal computers, inherently more portable than other communications devices and carry far more personal and valuable data than ever before. In fact, on average a mobile phone in the EU is worth €476.07 with a mobile subscriber spending €401 a year on their mobile phone bill, €69 acquiring their handset and €6.07 on mobile content (ringtones, wallpaper, games, music etc). Spain registered the highest spending on mobile phone bills (with phone users spending on average €544 per year), Italy recorded the highest spending on the handsets themselves (with an Italian mobile phone user paying on average €148 for a mobile phone) and the UK topped the poll on the amount spent on mobile content per year.  

The survey also found that while we are using our phones to take more photos and record more videos, we are at risk of losing these precious personal memories as the majority of people surveyed (50.0 per cent across Europe) do not back up their data.

Airwide Solutions helps mobile operators to tackle problems of mobile security through the company’s comprehensive mobile security portfolio, part of its overall portfolio of integrated mobile messaging, applications and services. Airwide’s suite of solutions provides mobile operators with the ability to instantly disable lost or stolen phones on the network, lock and wipe data from stolen phones, view the inventory of mobile phones on the network so that they can take better preventive measures against theft and fraud and finally protect mobile users from inappropriate content (including everything from preventing users from receiving spam and unsolicited messages, to stopping children browsing inappropriate mobile web sites such as gambling or adult content).  And products like AirMessenger Personal from Airwide allow individual subscribers to personalize their settings to protect themselves from unwanted messages and spam as well as limiting the amount spent.

Growth in mobile messaging to continue despite downturn in global economy

An independent study conducted by comScore M:Metrics on the use of mobile messaging across the UK, France, Germany, Italy and Spain. The results prove that despite warnings of turmoil throughout the global economy, growth in mobile messaging shows no signs of slowing. The study shows that the number of people sending text messages (SMS) across the EU is growing 3.3% year on year, a figure only beaten by MMS which is growing by 9.2%.

The UK is faring particularly well with over 25 million text messages sent each day. Growth is driven in particular by those who earn over £30,000 (who are sending on average 16.9% more text messages this year than the same period last year). However, the growth in mobile messaging by those earning less than £30,000 is also doing well with almost 4% annual growth year-on-year.

France is seeing the second biggest increase with 8.1% more people sending text messages this year than the same period last year. Interestingly the French have also been the most keen to embrace picture messaging with 15.2% more people sending MMS than in 2007 (the biggest increase across Europe).

However, it is not only Europe which is seeing a continued growth in SMS and MMS. Airwide predicts a worldwide growth in mobile messaging over the next few years, particularly in less economically developed and newly industrialized regions such Asia and Africa where fixed lines are expensive and difficult to set up. It is in these regions, where mobile phones are being used not only as a communications tool but also as a driver for social change, making communications easier, cheaper and much less time-consuming.

In the Western World growth will be fuelled by a combination of mobile operators introducing a greater number of personalized services such as out-of-office, auto-forward and storage/back-up capabilities along with a continued uptake in mobile marketing and advertising – a development which in 2009 will see the introduction of location based mobile advertising.

Jay Seaton, Chief Marketing Office at Airwide Solutions commented: “While an increase in mobile messaging traffic is certainly good news for the industry, it also underlines the need to ensure that an operator’s underlying infrastructure is efficient and equipped to support the increase in traffic volumes over the years ahead. With most people now relying on their text and picture messages being delivered instantaneously, mobile operators cannot afford for their infrastructure to become congested. As the volume of messaging increases, they also need to be able to protect their networks and subscribers from potential security threats such as mobile fraud, spam and viruses.”

He added, “While we expect continued growth, in these difficult financial times, consumers are always on the lookout for better and cheaper deals meaning they may be more inclined to switch service providers.  As a result, it is also critical that operators keep churn to a minimum in these times when people will switch service providers easier, by introducing network-based services like the ability to archive messages and contacts, copy messages to multiple recipients and enhanced protections from Spam and other mobile threats.”

Capitalizing on the Potential of Application-Oriented  Multimedia Services

Now more than ever, application-oriented MMS represents a tremendous opportunity for operators because key requirements for application-oriented multimedia services have fallen into place in many markets worldwide:

• MMS-capable handset penetration is at or above 95% in many developed markets such as North America and Western Europe
• Price cuts and creative service bundling approaches are for the first time making MMS affordable for the mass market
• Interoperability agreements are in place so that mobile operators can enable interworking between multiple carriers
• Subscribers are now familiar with the vast potential of MMS and mobile data services

As a result of these key requirements finally being in place, MMS has been gaining momentum and shifting from a vision of the future to a real-world capability that can differentiate mobile operators and dramatically increase subscriber loyalty through rich multimedia services. Person-to-person (P2P) P2P traffic in markets such as North America, Asia, and Eastern Europe is experiencing torrid growth, and other markets—such as in countries in Western Europe—are also beginning to show signs of significant growth. Mobile operators are also now finding that application-to-person (A2P) MMS can be a valuable tool for stimulating high-value MMS uptake. A2P MMS is frequently used in educational campaigns, and services are being created to stimulate viral adoption.

Download the full Airwide white paper to learn more about the revenue opportunities for MMS services, the limitations of existing infrastructure and new approaches that leverage MMS bulk messaging engines to allow mobile operators to profitably deliver application-oriented MMS services that drive increased subscriber loyalty, market share and average revenue per user (ARPU) levels.

From fear and uncertainty to security and calm – how a new mobile security directive in India will help protect national security

By Jayanth Nagaranjan, country manager for India, Airwide Solutions

While the use of mobiles has seen tremendous growth worldwide, no region has seen a greater increase than in India where mobile subscribers now top nearly 300 million, according to figures released In August of this year by the Telecom Regulatory Authority of India.  In India, as is the case with many less economically developed countries, mobiles have proved fundamental to changing the way people work and socialize. They have made communications easier, cheaper and much less time consuming and have offered people a powerful medium with which to interact with each other – both for business and personal use.
However, a recent directive issued by the Indian Government has highlighted a darker side to the growth in mobile phones across the region. Along the borders of the long-disputed Jammu/Kashmir region and in the areas around the national capital, volatile North East and some western and southern states, mobile phones are being used to remotely detonate bombs and explosives. This growth has prompted the Indian government to take a very serious look into mobile security across India.

It seems that the very characteristics which have helped make the mobile channel such a driver for positive social change (ubiquity, immediacy, engagement and interactivity) are now being used against the Indian society – as a way of fuelling the current spate of bombings and terrorist attacks. As part of the investigations surrounding the blasts in India’s North East, for example, one of the parties under investigation included a man whose mobile phone was used to send a text message the group claiming responsibility.

In this instance, the perpetrators admitted responsibility. However, the relative anonymity of the mobile phone means they don’t have to and if they don’t it leaves the Indian government with the difficult task of having to trace who the phone belongs to – a task made impossible when a large number of handsets are un-marked, unbranded and without International Mobile Equipment Identity (IMEI) numbers.

What are IMEI numbers?

Although small and discreet (often only appearing on a label in the battery compartment of the phone), IMEI numbers perform a vital role. They are used to identify valid devices so if a mobile phone is stolen, the owner can call his or her network provider and instruct them to "ban" the phone. This renders the phone useless, regardless of whether the phone's SIM card has been changed.

The reason many phones in India do not have IMEI numbers is because a significantly large proportion of the population is poor. For these people the cost of purchasing a mobile handset is too high. Enter the manufacturers of inexpensive handsets. These companies originate from across the globe and are ready to serve a large and willing Indian market. Their model of providing low cost mobile handsets straddles a fine line between technology and operational innovation. The associated stripping away of features and functionality in some cases results in a plethora of unmarked handsets (i.e. phones which have no IMEI number) circulating the Indian mobile phone market.

What can be done about it?

In the interest of national security, the Department of Telecommunications (DOT) branch of the Indian government recently issued a directive that telecom companies in India must block calls made from handsets which do not have valid and traceable equipment identity numbers. 

To do so, mobile operators have three months to set up and activate Equipment Identity Registers (EIRs) which contain a database of all valid mobile equipment on an operator’s network, inventoried by their IMEI numbers.  Using an EIR, mobile operators are able to track and log all valid equipment and block handsets with invalid or missing IMEIs from operating on the network.

Some EIR systems also have the added benefit of helping operators to deal with the issues of handset theft and mobile fraud. According to the Communications Fraud Control Association, fraud losses range from $54.4 billion to $60 billion a year, and this cost is in addition to the negative impact fraud can have on the use of new services and the intangible cost of damage to the mobile operator’s brand.  By allowing operators to bar phones that are associated with mobile fraud and by detecting SIM and handset cloning, EIR systems can be a powerful tool for operators in fighting threatening activities on their networks.

In this way the Indian government’s directive aims to eliminate the circulation of untraceable mobile phones which are either missing or have invalid IMEIs. As these are often the phones used in criminal activities, this new legislation will significantly reduce the threat posed to national security from the remote detonation of bombs and explosives as well as protect subscribers from the threats of mobile theft and fraud.

Season’s greetings, from Airwide Solutions

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